Ontario jobs hit hard as unemployment climbs to highest level in nearly a decade

“These numbers are truly alarming. Ontario workers are facing the worst job losses in more than a decade, with the manufacturing sector hit especially hard,” said Bell. “Families can’t afford more government inaction while good, full-time jobs disappear from right underneath of us.” (Pexels Photo)

QUEEN’S PARK – Shadow Minister for Finance Jessica Bell (University-Rosedale) and Shadow Minister for Economic Development, Job Creation and Trade Catherine Fife (Waterloo), are responding to the Financial Accountability Office of Ontario (FAO) Q2 financial report showing that the province is facing steep job losses and rising unemployment as U.S. tariffs and slowing growth weigh heavily on Ontario’s economy.

“These numbers are truly alarming. Ontario workers are facing the worst job losses in more than a decade, with the manufacturing sector hit especially hard,” said Bell. “Families can’t afford more government inaction while good, full-time jobs disappear from right underneath of us.”

The FAO report shows that Ontario has lost 38,000 jobs in the second quarter of 2025, including 56,000 full-time positions. Manufacturing was hardest hit, losing 29,400 jobs, the largest decline since 2009 outside of the pandemic, followed by losses in business support services; culture and recreation; transportation; and agriculture.

“The numbers don’t lie. We know that over 700,000 Ontarians are unemployed, and now we’re seeing the painful combination of tariffs and weak government policy making the situation worse,” said Fife. “We’re watching key sectors like trade and manufacturing deteriorate, while workers are left without security. This government has yet to put forward a credible plan to protect jobs or provide families with the stability they need.”

The FAO projects Ontario’s economic growth to slow to just 0.6 per cent in 2025, leaving workers and communities across the province exposed to further instability in the months ahead. Ontario can’t afford more delays. Without action to protect jobs and strengthen the economy, more families will be left struggling, and more communities will be put at risk.

Quick Facts: 

• Ontario lost 38,000 jobs in Q2 2025; full-time employment fell by 56,000.

• Manufacturing down 29,400 jobs, largest loss since 2009 (outside the pandemic).

• Other sectors hit: business support (-14,900), culture & recreation (-12,900), transport (-8,600), agriculture (-8,500).

• Windsor unemployment reached 11.2%, the highest in Canada.

• Provincial unemployment rate now 7.8%, the highest since 2012, excluding the pandemic.